CME fines Hartree Partners Power & Gas Company (UK) for NYMEX rule violations
International derivatives marketplace CME Group has posted a notice of disciplinary action against Hartree Partners Power & Gas Company (UK) Limited.
Pursuant to an offer of settlement in which Hartree Partners Power & Gas Company (UK) Limited neither admitted nor denied the rule violation or factual findings upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee found that on April 1, 2022, Hartree simultaneously negotiated the purchase and sale of December 2022 CBL Nature-Based Global Emissions Offset Futures in separate block trades opposite a single counterparty.
Hartree understood that the purpose of the block trades was to accommodate the counterparty’s transfer of positions between related accounts. As such, Hartree knew or reasonably should have known that the purpose of the trades was to negate or strictly limit market risk.
The Panel thereby concluded that Hartree violated NYMEX Rule 534.
In accordance with the settlement offer, the Panel ordered Hartree to pay a fine of $20,000 and disgorge profits in the amount of $3,050.